Oct 31, 2019

Announcement on Financial Forecast and Dividends Forecast Revision

Tokyo Electron (TEL) announced that the financial forecast and the dividends forecast announced on April 26, 2019 have been revised based on recent business trend as follows.

1. Financial Forecast Revision

Consolidated financial forecast revision for the fiscal year ending March 31, 2020 (April 1, 2019 - March 31, 2020)

Net sales (Millions of yen)

Operating income (Millions of yen)

Ordinary income (Millions of yen)

Net income attributable to owners of parent

(Millions of yen)

Net income
per share

(Yen)

Previous forecast (A)

(April 26, 2019)

1,100,000

220,000

220,000

164,000

1,000.25

Revised forecast (B)

1,110,000

225,000

229,000

170,000

1,068.83

Change (B-A)

10,000

5,000

9,000

6,000

Change ratio (%)

0.9

2.3

4.1

3.7

Results for the year
ended March 31, 2019

1,278,240

310,571

321,662

248,228

1,513.58


(For reference)

Consolidated financial results for the six months ended September 30, 2019 (April 1, 2019 - September 30, 2019)

Net sales (Millions of yen)

Operating income (Millions of yen)

Ordinary income (Millions of yen)

Net income attributable to owners of parent

(Millions of yen)

Net income
per share

(Yen)

Previous forecast (A)

(April 26, 2019)

490,000

85,000

85,000

63,000

384.24

Results for the six

months ended

September 30, 2019 (B)

508,442

102,454

106,692

78,722

490.18

Change (B-A)

18,442

17,454

21,692

15,722

Change ratio (%)

3.8

20.5

25.5

25.0

Results for the six

months ended

September 30, 2018

691,034

175,418

181,247

135,294

824.70

Reason for financial forecast revision

Regarding the first half of the fiscal year, sales were better than initial forecasts due to favorable sales of core semiconductor production equipment for logic/foundry. On the income side as well, operating income, ordinary income, and net income attributable to owners of parent each exceeded initial forecasts.

In addition, the figures announced on April 26, 2019 for the full-year financial forecasts as well were revised, reflecting the most recent trends in customer capital investment and business performance.

Note: The financial forecasts and estimates stated in this announcement are based on certain assumptions judged to be reasonable by TEL in light of information currently available concerning economic conditions in Japan and overseas, fluctuations in foreign exchange rates, and other factors that may have an impact on performance. TEL does not promise that the forecasts or estimates will be accurate.

They are therefore susceptible to the impact of many uncertainties, including market conditions, competition, the launching of new products (and their success or failure), and global conditions in the semiconductor related industry. Consequently, actual sales and profits may differ substantially from the projections stated in this announcement.

2. Dividends Forecast Revision

Dividend per share

(Yen)

1Q-end

2Q-end

3Q-end

Year-end

Total

Previous forecast (April 26, 2019)

193.00

309.00

502.00

Revised forecast

290.00

536.00

Results for the year
ending March 31, 2020

246.00

Results for the year
ended March 31, 2019

413.00

345.00

758.00

Reason
The dividend policy of TEL is to link dividend payments to business performance on an ongoing basis. Its basic policy for returning profits to shareholders is to maintain a payout ratio of around 50% based on consolidated net income attributable to owners of parent. As described above, in conjunction with the revision of our consolidated forecasts, TEL has also revised our annual dividends forecast from 502 per share to 536 yen. (Interim dividends: 246 yen, Year-end dividends: 290 yen)